WorksheetsFederal Taxes
Total questions: 15
Worksheet time: 8mins
What does the term "Tax Bracket" refer to?
The total tax that a person or entity has to pay.
The report that a taxpayer must file annually.
The income ranges and the tax rates that apply to them.
The process of determining one's income.
What is "Tax Liability"?
The process of filing a tax report.
The income ranges and the tax rates that apply to a taxpayer.
The total tax that a person or entity (business) has to pay.
The document that outlines a taxpayer's financial transactions.
What is the purpose of a "Tax Return"?
To report the total income of a person or entity for the year.
To determine the tax rates applicable to different income ranges.
To outline the financial transactions of a taxpayer.
The report that a taxpayer must file annually which is used to determine their tax liability.
What determines how much you will have to pay in taxes?
Your employer
Your W-4
Your tax bracket
Your bank balance
What is the range of the percentages for tax brackets?
5% to 30%
10% to 37%
15% to 40%
0% to 35%
What is the purpose of your W-4 form?
To report your annual income
To determine your tax refund
To tell your employer how much money to withhold from your paycheck for taxes
To calculate your taxes owed
How is your tax bill in the Spring determined?
The amount of money withheld by your W-4 plus your taxes owed
Your annual income minus your taxes owed
Your taxes owed minus the amount of money withheld by your W-4
Your bank balance minus your taxes owed
What can the result of your tax bill calculation be?
Either a refund or money owed
Always a refund
Always money owed
A loan from the government
What does owing a bunch of money on your taxes imply?
You have saved enough money throughout the year.
You have overpaid your taxes.
You are not holding enough back.
You have received too many refunds.
What is a W-2 form?
A form that states your eligibility for employment.
A form that states who you work for and how much money you made.
A form that states your tax exemption status.
A form that states your retirement plan contributions.
By when must employers send out the W-2s to their employees?
By January 31st
By April 15th
By December 31st
By February 15th
Who are eligible for extensions to file their taxes beyond April 15th?
All taxpayers who file electronically.
Only taxpayers with an income below a certain threshold.
Active duty military personnel and anyone who requests them before the deadline.
Taxpayers who have not received their W-2s.
By what date must all taxpayers file their taxes?
January 31st
April 15th
December 31st
July 15th
What is the fine for not paying taxes on time?
2% of your unpaid taxes for each month it is late
5% of your unpaid taxes for each month it is late
10% of your unpaid taxes for each month it is late
No fine is imposed for late payment of taxes
What can be a consequence of not filing taxes or not paying the balance owed?
A warning letter from the IRS
Mandatory community service
Ending up in Federal Prison for Tax Evasion or Willful Failure to File
A reduction in future tax refunds
